Provisions Affecting Coverage of Employment or Earnings

These provisions extend or reduce the categories of workers
or the amount of earnings covered under the Social Security system.
We provide a summary list of all
options in this category. For each provision listed below, we
provide an estimate of the financial effect on the OASDI program over
the long-range period (the next 75 years) and for the 75th year.
In addition, we provide graphs and detailed single year tables.
We base all estimates on the intermediate assumptions
described in the
2011 Trustees Report.

Choose the type of estimates (summary or detailed) from
the list of provisions.

Number

Table and graph selection

F1

Starting in 2012, cover newly hired State and local government employees.

Expand covered earnings to include employer and employee premiums for employer-sponsored
group health insurance (ESI). Starting in 2018, phase out the OASDI payroll tax exclusion
for ESI premiums. Set an exclusion level at the 75th percentile of premium distribution in
2018, with amounts above that subject to the payroll tax. Reduce the exclusion level each
year by 10 percent of the 2018 exclusion level until fully eliminated in 2028. Eliminate
the excise tax on ESI premiums scheduled to begin in 2018.

Expand covered earnings to include contributions to voluntary salary reduction plans
(such as Cafeteria 125 plans and Flexible Spending Accounts). Starting in 2012, subject
these contributions to the OASDI payroll tax, making the payroll tax treatment of these
contributions like 401(k) contributions.